Victoria Thompson, Debra McDaniel and Jinny Alexander, all with Reece & Nichols, this week stopped by Cami Savage’s new upscale condo listing near the Plaza and Loose Park near 51st andOak. The contemporary home features amenities such as a heated pool, private, fenced patio and upgrades galore.
Cami Savage of Reece & Nichols in the living room with Brian Brockman of Plaza Mortgage. Below, a view from the street.
Agent says buyers want more for their money
Walter Guth of Prudential Kansas City Realty looks upon real estate as a continuation of his personal ministry, a ministry that started years ago as an actual church minister. Guth served as pastor of a church at 30th Street and Holmes Road in Kansas City after earning a Masters of Divinity at Midwestern Baptist Theological Seminary in Kansas City and a Ph.D. in Contemporary Theology at Southern Baptist Theological Seminary in Louisville, Kentucky. Wanting a career change, he eventually landed in real estate. He initially focused on rebuilding KC’s Northeast neighborhoods, and today he has broadened his business to specialize in historic home sales across the metro area, from 19th Century homes in Liberty to mansions in KC’s Historic Hyde Park. Guth, an agent for broker Dan Sweeney based on the Country Club Plaza, recently talked with MetroWire about the urban core market:
Much of the real estate market appears to be improving? How’s the urban core doing?
The first indication I saw of a declining real estate market was in the Northeast sector of Kansas City, Mo in 2005. While the subsequent effects of a recession, job losses, foreclosures and tightening lending have hit every area and price range within the metro area, I have seen it worst within the urban core (north of the Plaza, especially) and eastern Jackson County, Missouri. I see very little improvement in sales in the Urban Core, mainly because of interest in condo living and because tastes have changed, with style preferences gravitating away from Victorian and post-Victorian homes (dominant in the areas north of the Plaza) towards Craftsman and mid-century modern homes (among the historic homes), more prevalent throughout the city.
What do urban buyers want in a home these days, and what has changed about their interests or preferences in the past year?
Buyers want more for their money than they may have asked for in the past. The condition of the home — ideally “move in ready” with an interior decor that suits them — is more important than it used to be. I see fewer people having the time or desire to tackle major renovations than in the past. So home sellers are forced into two primary markets today: either the “ideal home” that is in great condition and updated with the style preferences of the buyer, or the “as is” home that has to compete in pricing with the foreclosures and short sales. The exceptions are the atypical houses with unique architecture or more land than surrounding homes. So it behooves the home seller to put his/her home in top condition, with updated kitchen and baths especially, have the home pre-inspected, and have the home staged prior to the first showing.
What are your strengths as an agent and how has your approach changed over time?
Teaching. I like my clients to be well informed about the real estate market and the “how to’s” of buying or selling a home. I recently had a home buyer contact me, stating that since I had sold her a home many years ago she has, in her travels bought and sold several others (in various areas of the country) with confidence, based upon what all I had taught her in our first transaction together. She had no question about hiring me again, and we closed on her new purchase this year. As evidenced by my “5 Star Realtor” awards since 2005, my clients are typically very satisfied with my job performance and actively recommend me to others. The most important change I’ve made, besides opening up my market area, has been a decision to decline listings or buyers I do not sense ready to work realistically with me, either in setting (or offering) a fair market price or in expectations of my role versus theirs in the transaction. In the past I have had listings as long as 3 years, waiting for the market to increase to the level of seller’s pricing, for example. Today, in an economy and real estate market recovering slowly at best, I would not do or recommend that.
Stats show Realtors sticking to the job
With the real estate market improving, three-quarters of Realtors are very certain they will remain active in the market for two more years, according to the 2010 National Association of Realtors Member Profile. Only 8 percent were uncertain about their future. The study’s results are representative of the nation’s 1.1 million Realtors who account for 60 percent of the 1.85 million active real estate licensees in the U.S. The typical NAR member has 10 years of experience, and many have increased their training, Web presence and use of social media over the past year. More than half use social networking sites, up from 35 percent in 2009. Analysis of data from the Association of Real Estate License Law Officials shows the number of active real estate licensees in the U.S. fell 7.5 percent last year from 2.0 million in 2008. The number of licensees who are not Realtors was 750,000 in 2009, down 14.8 percent from 880,000 in 2008. At the same time, NAR membership fell only 0.7 percent. The survey shows the typical NAR member is 54 years old and works 40 hours per week; 57 percent are women. Women account for 51 percent of brokers and 63 percent of sales agents. Four percent of all Realtors® are under 30 years old while another 5 percent are 30 to 34 years old; 17 percent are 65 or over. The median income of Realtors fell 3 percent to $35,700 last year, which followed a 14 percent decline in 2008. Members licensed as brokers earned a median of $49,100 in 2009, while sales agents earned $26,600. Realtors in the business for two years or less earned a median of $8,800, while those in the business for 16 years or more earned $52,300. “The longer you’re in the real estate business, the more you make based on growth in referrals and repeat clients from serving their long-term interests,” NAR President Vicki Cox Golder said.